Afghanistan shuts down 16 cryptocurrency exchanges and arrests their operators

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Last Updated on August 27, 2022 by Bitfinsider

In the last week, Afghan security forces have shut down a number of cryptocurrency exchanges in the western Herat province, according to the English-language Ariana News portal. According to the outlet, at least 16 platforms that trade digital currencies have been shut down.

According to the report, the head of the Herat police counter-crime unit, Sayed Shah Sa’adat, reminded Da Afghanistan Bank (DAB), the country’s monetary authority, that crypto trading had caused numerous problems, including people being scammed.

The Herat Money Exchangers’ Union’s Ghulam Mohammad Suhrabi explained that Afghan companies open cryptocurrency accounts outside of the country. “This currency is new to the market and has high volatility,” he said.

The Afghan officials are most likely referring to a statement issued by the central bank in Kabul in late June, which declared that online forex trading is against Islam and prohibited it. The regulator, through a spokesman, warned that anyone engaging in this activity would face prosecution.

According to Ariana News, DAB issued another statement reinforcing the order in mid-July. Despite the prohibition, Afghans, particularly in the capital city, continued to trade, according to the bank. The authority emphasized that it had not licensed any individual or company to trade online, and those who did so were breaking the law.

Following the Taliban’s return to power in Kabul, Afghanistan’s already precarious economy deteriorated even further. The United States, which withdrew its forces in 2021, seized $10 billion in DAB assets and imposed sanctions.

Financial constraints, as well as the withdrawal of Western companies, made it more difficult for the Afghan diaspora to send money home. As a result, many Afghans turned to cryptocurrency, which allowed them to keep their savings and avoid seizure by the government.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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